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Bajaj Auto reports 13.6% Profit Growth despite a 2% dip in sales : Result Analysis

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Bajaj logoBajaj Auto Results for Jun 2016 are out. The bruised automobile manufacturer reported a 48% growth in Domestic Sales for the first quarter against the Industry growth of 23% with motorcycles registering a growth of 13%.

Result Analysis: Bajaj Auto

The company registered a 13.6% growth in Consolidated EPS with Net Profits after tax crossing a 1,000 crore mark at Rs. 1,040 crore despite a fall in QoQ sales by 2%. (detailed numbers here).
Growth was fuelled on account of the iconic Bajaj V which touched sales of 82,000 units in the first quarter while on the commercial vehicles front, the company has managed to maintain a positive QoQ growth.
Bajaj Auto’s International business has been facing headwinds on account of declining exports to Nigeria and Egypt. Its Netherlands subsidiary received Rs. 78 crore in terms of dividend from its KTM partner.

  • Total Income from Operations increased by 3.53% to Rs. 6,088.75 crore.
  • Profit After tax increased mildly by 5.58% to Rs. 1,024.59 crore.
  • EPS increased by 13.61% to Rs. 35.9 per share with the company treasuring over Rs. 10,000 crore in cash (about Rs. 340 per share)

Other notable points were:

  • Excise duty paid noticed a bump by Rs. 60 crore to Rs. 340.80 crore.
  • Employee expenses increased Rs. 25 crore on the bonus and other accruals.
  • Tax Expense was down by 23 crore to Rs. 978.05 crore.
  • Revenue from the automotive segment stood at Rs. 6,355.84 crore compared to Rs. 6,098.36 a year ago. PAT from this segment stood at 20% or Rs. 1207.49 crore.

Bajaj Auto Q12017 Results Analysis
Disclosure: Analyst or Family do not hold the stock
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